Tata Steel's board has decided to replace Cyrus P. Mistry as chairman with immediate effect and elected O. P. Bhatt, an independent director, as the chairman.
A statement said: "The board of directors of the company at the meeting held on November 11, 2016, took note of the leadership changes at Tata Sons Limited as well as the special notice & requisition received from Tata Sons Limited (promoter and principal shareholder) to convene an Extraordinary General Meeting (EGM) and place a resolution, inter alia, for the removal of Mr. Cyrus P. Mistry as a director of the company.
"In view of the current situation i.e. the above special notice & requisition received from Tata Sons Limited, the board of directors through circular resolutions dated November 25, 2016 passed by majority consent, has decided to replace Mr. Cyrus P. Mistry as the chairman of the board with immediate effect and have elected Mr. O. P. Bhatt, an independent director as the chairman of the board.
"Mr. Bhatt will serve as chairman till the outcome of the extraordinary general meeting of the company. The Board appointed the independent director as the chairman keeping in mind principles of good corporate governance and to provide impartial leadership to the company in its preparation and conduct of the EGM. This decision was taken to also ensure stability to the company and in the larger interest of Tata Steel's stakeholders including but not limited to employees, trading partners, financial stakeholders and local community around its operations.
"Mr. O. P. Bhatt was appointed as an independent director of the company on June 10, 2013. He has served as the chairman of State Bank of India, India's largest commercial bank. He serves as an Independent Director on several Board's including Standard Chartered Bank plc, Tata Consultancy Services and Hindustan Unilever."